[New York Stock Exchange] Dow Closes Above 50,000 for the First Time

Expectations of Gains from Massive AI Spending

On the New York Stock Exchange, the Dow Jones Industrial Average (hereinafter the Dow) closed above the 50,000 mark for the first time on the 6th (local time).

Reuters and Yonhap News Agency

On this day, the Dow on the New York Stock Exchange finished trading at 50,115.67, up 1,206.95 points (2.47%) from the previous session. This was the first time the Dow broke through the 50,000 level.

The large-cap-focused S&P 500 Index closed at 6,932.30, up 133.90 points (1.97%) from the previous session, while the tech-heavy Nasdaq Composite ended at 23,031.21, up 490.63 points (2.18%).

By stock, Nvidia surged 7.87%. Competitors such as AMD (8.2%) and Broadcom (7.22%) also jumped sharply. Expectations grew that as major big tech companies increase capital expenditures for building artificial intelligence (AI) infrastructure this year more than previously expected, AI chipmakers will benefit.

On the 4th, Google projected capital expenditures this year at 175 billion to 185 billion dollars, roughly double last year’s 91.4 billion dollars, while Amazon forecast in its earnings release the previous day that capital spending for expanding AI data centers and other purposes would rise from 150 billion dollars last year to 200 billion dollars this year. However, Amazon fell 5.55% on the day amid concerns over the burden of its capital expenditures.

Ross Mayfield, investment strategist at investment firm Baird, said, "We believe there is real demand for AI products, there are concrete business plans, and there is evidence that massive spending is necessary to achieve them," adding, "When sell-offs like the recent one occur, a certain group of buyers emerges to buy the dip at a certain level of the bottom."